By Michael Scott
The US-based payment platform Affirm (AFRM) is set to close its crypto unit by March 2. The company would also trim 19% of the workforce, citing uncertainty in the crypto market.
A shareholders’ statement issued by the company’s chief executive Max Levchin on February 8 confirmed that the income generated by the company failed to surpass the firm’s target mandating the management to take tentative steps.
Besides pumping more value into the investment in January, Affirm’s Gross Merchandise Volume (GMV) and Income deduct transaction cost failed to yield measurable amounts to sustain the operation of the crypto sector.
Affirm Shutting Down Operations
The payment network was initiated during the previous bull run in 2021 to provide crypto-related activities. Afterward, Affirm’s growth has spurred over the years, inspiring the firm to provide credit services to a hundred thousand customers weekly.
Besides Affirm’s stock price dropping by 17%, the company holds 0.25% of the US retail industry.
According to the chief executive Max Levchin, the company would lay off 19 % of the workforce to remain operational. Levchin disclosed that the company would close its crypto platform in early March.
Affirm Reveal the Next Move
Levchin said that the company aims to reroute its focus towards research and development (R&D) due to the current uncertainty in the crypto realm. He restated that the company would prioritize the execution of the ongoing projects.
Affirm aspires to become a customer-centric company, and efforts toward the common end have kicked off.
Moreover, Levchin confirmed that the firm would invest in improving its debit platform to attract more investors.